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FAR and DFARS › FAR Part 41: Acquisition of Utility Services › Subpart 41.4

FAR 41.401 Monthly and annual review.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section requires agencies to review utility service invoices every month to check their accuracy. It also requires annual reviews of utility accounts above the simplified acquisition threshold to confirm the supplier is charging the most economical applicable rate and to look at competitive market options. For accounts at or below that threshold, annual reviews happen only when the Government decides they are worthwhile.

Applies to: Federal agencies managing utility service accounts

What it requires

  • Review utility service invoices on a monthly basis to ensure accuracy
  • Review all utility accounts with annual values exceeding the simplified acquisition threshold on an annual basis
  • Base the annual review on the facility's usage, conditions, and service characteristics at each delivery point for the most recent 12 months
  • Request the supplier to change to a more advantageous rate immediately if one is appropriate

Key terms: simplified acquisition threshold · utility service invoices · annual review · monthly review · delivery point

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

Agencies shall review utility service invoices on a monthly basis and all utility accounts, with annual values exceeding the simplified acquisition threshold, on an annual basis. Annual reviews of accounts with annual values at or below the simplified acquisition threshold shall be conducted when deemed advantageous to the Government. The purpose of the monthly review is to ensure the accuracy of utility service invoices. The purpose of the annual review is to ensure that the utility supplier is furnishing the services to each facility under the utility's most economical, applicable rate and to examine competitive markets for more advantageous service offerings. The annual review shall be based upon the facility's usage, conditions and characteristics of service at each individual delivery point for the most recent 12 months. If a more advantageous rate is appropriate, the Federal agency shall request the supplier to make such rate change immediately.

Sections that refer to it

  • 41.402 Rate changes and regulatory intervention.

← 41.301 Requirements. · 41.402 Rate changes and regulatory intervention. →

Rule changes for FAR Part 41

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 41.401 Monthly and annual review · SpendQuery